Engle Capital Management L.P. Lowers Stock Holdings in Carvana Co. $CVNA

Engle Capital Management L.P. trimmed its position in Carvana Co. (NYSE:CVNA) by 86.2% during the fourth quarter, HoldingsChannel reports. The institutional investor owned 6,000 shares of the company’s stock after selling 37,456 shares during the period. Carvana comprises approximately 1.0% of Engle Capital Management L.P.’s holdings, making the stock its 25th biggest holding. Engle Capital Management L.P.’s holdings in Carvana were worth $2,532,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of CVNA. Royal Bank of Canada lifted its holdings in shares of Carvana by 40.8% in the first quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock worth $6,243,000 after buying an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Carvana by 251.4% in the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock worth $53,000 after buying an additional 181 shares in the last quarter. Cerity Partners LLC lifted its holdings in shares of Carvana by 28.8% in the second quarter. Cerity Partners LLC now owns 5,481 shares of the company’s stock worth $1,847,000 after buying an additional 1,226 shares in the last quarter. AXA S.A. lifted its holdings in shares of Carvana by 340.7% in the second quarter. AXA S.A. now owns 4,253 shares of the company’s stock worth $1,433,000 after buying an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in shares of Carvana by 9.1% in the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company’s stock worth $3,334,000 after buying an additional 825 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on CVNA shares. Gordon Haskett increased their price target on shares of Carvana from $67.00 to $85.00 and gave the stock a “hold” rating in a report on Thursday, April 30th. Needham & Company LLC restated a “buy” rating and issued a $120.00 target price on shares of Carvana in a research note on Friday, June 5th. Evercore upped their target price on Carvana from $78.00 to $80.00 in a research note on Tuesday, April 28th. UBS Group restated a “buy” rating and issued a $104.00 target price (up from $97.00) on shares of Carvana in a research note on Thursday, April 30th. Finally, Wedbush decreased their target price on Carvana from $100.00 to $85.00 and set an “outperform” rating on the stock in a research note on Thursday, February 19th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $93.14.

Carvana Stock Down 10.3%

Shares of NYSE:CVNA opened at $62.82 on Thursday. Carvana Co. has a 52-week low of $54.46 and a 52-week high of $97.38. The firm has a fifty day moving average of $71.47 and a 200 day moving average of $75.19. The firm has a market capitalization of $68.91 billion, a PE ratio of 38.21, a price-to-earnings-growth ratio of 11.82 and a beta of 3.45. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $1.37. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The company had revenue of $6.43 billion during the quarter, compared to analyst estimates of $6.12 billion. As a group, research analysts anticipate that Carvana Co. will post 1.58 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director J Danforth Quayle sold 14,525 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the sale, the director directly owned 214,960 shares in the company, valued at approximately $15,047,200. The trade was a 6.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $67.83, for a total transaction of $1,017,450.00. Following the completion of the sale, the director owned 186,470 shares of the company’s stock, valued at approximately $12,648,260.10. The trade was a 7.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 415,812 shares of company stock valued at $29,056,896 in the last three months. 15.19% of the stock is owned by corporate insiders.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding into new vehicle sales, with seven new-vehicle franchises already acquired; investors may view this as a meaningful growth opportunity that broadens the company’s addressable market. Carvana is expanding into new vehicles. The implications could reshape the U.S. automotive retail market
• Positive Sentiment: Analyst commentary remains constructive, with price targets implying notable upside and recent estimate revisions suggesting Wall Street still sees earnings growth potential for CVNA. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Several bullish articles argue Carvana’s turnaround is still intact, citing strong revenue growth, expanding margins, and operational efficiencies that could support further upside. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: A director sold 15,000 shares, but the transaction was relatively modest versus the insider’s remaining stake and does not clearly indicate a major change in fundamentals. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: CarMax’s earnings report and commentary on continued low margins are weighing on sentiment for Carvana, since investors are extrapolating sector-wide pressure onto CVNA. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins
• Negative Sentiment: Some commentary warns that the used-car market is softening and that credit-related risks could hurt margins and financing performance, which is fueling selling pressure in CVNA. CarMax Drops 7% Despite Earnings Beat, Carvana Tumbles 8% on Used-Car Margin, Credit Fears
• Negative Sentiment: Recent articles have also taken a skeptical view of Carvana’s turnaround story, arguing there may be hidden risks behind the bullish narrative. Carvana: The Turnaround Story Has A Hidden Trap

Carvana Company Profile

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.